Since the online landscape began, the number of e-commerce businesses across the country has grown exponentially.
Many of them have met a need in the marketplace by finding overseas goods of interest to American consumers, importing them, and reselling them at a profit.
And let's be honest – it's an incredibly effective business model.
Tracking goods from overseas can help you find products that are not yet available in American markets. This alone makes a crucial difference between you and other companies in the region.
In addition, the same products are often of high quality and can be obtained at an extremely low price.
As a result, this business method has become one of the most effective ways for U.S. residents to make a viable income with just a laptop, an internet connection, and some ingenuity.
However, recently things have changed.
Trump's import duties
Photo by Andrey Sharpilo on Unsplash
Since taking office, President Trump has introduced a number of individual tariffs for products imported from China.
This has increased the running costs for businesses across the country. It has also resulted in a significant rise in the price of a wide variety of goods in the United States, resulting in lower spending nationwide.
It is estimated that the imposed tariffs have had an impact on imports and exports valued at around $ 460 billion since they were introduced. It is also believed to have increased consumer costs by around $ 57 billion a year.
As you can imagine, these import tariffs have a significant impact on trade by reducing imports and exports while reducing consumer confidence in the market.
Oh, and in case it wasn't obvious, they are literally destroying small businesses.
However, if you own a small business we have found a solution.
There is a little-known shipping clause that you can use to get rid of tariffs called Section 321.
Essentially, Section 321 is a group of goods that goes through US Customs and Border Protection on a daily basis.
All goods entering the country classified as § 321 are completely tax-free and duty-free. This means that if you can categorize your imports as Section 321, you can eliminate tariffs completely.
Did someone say win?
Before getting too excited, it is important to note that not all goods can be imported as classified under Section 321.
For your shipment to be classified as Section 321, the total value cannot exceed $ 800. And before you ask – no – you can't just split your goods into several shipments.
A shipment covered by a single order or contract is not classified as Section 321 if the total value of that shipment exceeds $ 800.
But there is a solution.
Over the past two years we've created a number of Canadian fulfillment companies to help you avoid import tariffs by applying Section 321 in ways that small businesses simply cannot.
Photo by Sebastiaan Stam on Unsplash
Canadian fulfillment companies offer a service that aims to completely eliminate import duties and tariffs for American businesses.
This service for American companies enables them to reroute shipments of Chinese goods through Canada. A Canadian fulfillment company like Stalco then fulfills these orders and often sends them to individual consumers in the US on the same day.
As a result, your customers will get their products on time and with the same shipping costs and methods you would expect from any other US company.
In fact, they get them cheaper because you don't pay tariffs for your products.
Talk about a win-win situation.
Import tariffs on Chinese goods are destroying small businesses across America – but there is a solution.
By using Section 321, you can avoid import duties and save yourself a ton of money in the process. This means lower costs for your customers, more business and a longer lifespan in online business gaming.
Section 321: Avoiding US Import Duties was first published in Home Business Magazine.